“European stocks rose, rebounding from a 10-week low, as investors speculated that recent losses had overestimated the slowdown in the global economic recovery. U.S. futures climbed and Asian shares were little changed.
ING Groep NV (INGA) gained 1 percent as the Dutch bank was said to have received takeover approaches for its U.S. online unit. Credit Agricole SA (ACA) and Sky Deutschland AG (SKYD) climbed as brokerages recommended buying the shares of both companies. Mitchells & Butlers Plc (MAB)surged following a report that a group of investors may bid for the pub and restaurant owner.
The benchmark Stoxx Europe 600 Index advanced 0.1 percent to 272.38 at 12:12 p.m. inLondon, its first gain in five days. Standard & Poor’s 500 Index futures expiring in June increased 0.5 percent to 1,291, while the MSCI Asia Pacific Index rose 0.1 percent today.
“Investors have probably overestimated risk in the last few days,” said Matthias Jasper, the head of equities at WGZ Bank AG in Dusseldorf. “Equities are cheap relative to bonds. Companies are very healthy.”
The Stoxx 600 has fallen 2.9 percent since the beginning of the month and is currently trading at about 13 times its companies’ reported earnings, near the cheapest valuation since April 2009, according to data compiled by Bloomberg. Fifty-eight percent of companies in the gauge that have announced earnings since April 11 topped the average analyst estimate for per-share profit.”
If you enjoy the content at iBankCoin, please follow us on Twitter
